Japanese Content Industry Faces Record Losses Due to Online Piracy and Counterfeiting

The Japanese content industry is experiencing unprecedented financial damage from online piracy and the proliferation of counterfeit products, posing a significant structural threat to the sector. Recent data reveals a dramatic surge in losses, extending beyond traditional areas like video, publishing, music and games to include character merchandise.

Scale of the Damage: A Tripling of Losses

In January 2026, Japan’s Ministry of Economy, Trade and Industry (METI) released the results of its ‘Survey on the scale of damage from online piracy of Japanese-produced content in 2025.’ The survey, conducted in collaboration with the Japanese Content Overseas Distribution Promotion Agency (CODA) and targeting consumers in Japan, China, Vietnam, France, the United States, and Brazil, revealed a substantial increase in piracy-related losses.

The estimated damage from online piracy of Japanese content in 2025 reached approximately JPY 5.7 trillion (approximately KRW 53.5794 trillion), a threefold increase compared to the JPY 2 trillion recorded in 2022. When factoring in losses from counterfeit character products, valued at approximately JPY 4.7 trillion (approximately KRW 44.1551 trillion), the total damage soared to approximately JPY 10.4 trillion (approximately KRW 97 trillion).

Sector-Specific Impacts

The publishing sector bore the brunt of the damage, accounting for JPY 2.6 trillion in losses. Video content followed with JPY 2.3 trillion, while games and music suffered losses of JPY 0.5 trillion and JPY 0.3 trillion, respectively. The surge in publishing piracy is attributed to the increased availability of illegally scanned copies and the growing popularity of digital distribution.

Shifting Dynamics of Piracy

Interestingly, despite a decrease in the number of individual pirate users, the overall scale of damage has increased. This is attributed to a combination of factors, including a growing internet user base, exchange rate fluctuations, the overall expansion of the content market, and a shift towards the illegal distribution of high-value content.

Government Response and Policy Directions

In response to these escalating losses, the Japanese government is strengthening its anti-piracy measures. Key policy initiatives include:

• Expanding overseas local response bases to combat piracy at its source.
• Strengthening crackdowns on copyright infringement and counterfeit products facilitated by generative AI.
• Advancing the lawsuit response system through the establishment of a comprehensive rights information database.

Addressing AI-Driven Copyright Infringement

Recognizing the growing threat posed by AI-powered content creation and distribution, Japan is adopting a “complex response strategy.” This strategy combines technology-based surveillance and blocking systems with enhanced international cooperation to effectively address AI-driven copyright infringement.

Implications for National Competitiveness

The findings of METI’s survey underscore the evolving nature of the content industry, which is increasingly reliant on global distribution and robust rights protection. The ability to effectively combat illegal distribution is now considered a critical component of Japan’s national competitiveness.

Key Takeaways

• The Japanese content industry is facing record losses due to online piracy and counterfeiting, totaling JPY 10.4 trillion in 2025.
• The publishing sector is the most heavily impacted, followed by video content.
• Despite a decrease in pirate users, overall damage has increased due to market growth and the rise of high-value content piracy.
• The Japanese government is implementing a multi-faceted strategy to combat piracy, including AI-driven infringement.
• Protecting intellectual property is now viewed as essential for maintaining Japan’s national competitiveness.